As a small business owner, you know that tax time can be complicated. You might spend months preparing to file for yourself and your business, but the process will be much easier with the help of a professional tax preparation service in Tucson. If you are concerned about the changes that this year’s filings may hold from last year, read on for a quick forecast of taxes in 2018.
Lower Business Tax Rates
Arizona has been conducting a multiyear phasedown of the corporate tax rate, bringing it from 5.5 to 4.9 percent. With a lower tax rate, you might enjoy more financial freedom for your business, though it’s important to note that this program has been supplemented by limitations on certain tax credits. To be sure that you file deductions correctly and don’t overpay on your taxes, you should work with an accountant specializing in small business taxes.
Reduced Rates for High-Income Earners
Individual tax brackets will be adjusted in 2018, because a higher consumer price index (CPI) has increased the standard deduction by pushing income brackets upward. In other words, you might pay less on your individual taxes than you did last year, even if you’re taking home the same salary. If you are a high-income earner at a successful small business, you may see even more of a reduction in your tax rate thanks to an increased deduction.
Personal Exemption Phase Out
High-income earners who itemize deductions should be aware that there will be a phase out of personal exemptions, which may include mortgage interest deduction, state and federal tax deductions, and miscellaneous itemized deductions.
To understand the climate of taxes in 2018, get prepared to file early with Kalil & Associates Accounting Solutions. As a full-service accounting firm in Tucson, we serve a wide range of small businesses with tax preparation services, payroll, and bookkeeping.